How to Win from OTT Disruption Content Aggregation for Operators - - PowerPoint PPT Presentation

▶
how to win from ott disruption
SMART_READER_LITE
LIVE PREVIEW

How to Win from OTT Disruption Content Aggregation for Operators - - PowerPoint PPT Presentation

Aug 27, 2023 193 likes •571 views

How to Win from OTT Disruption Content Aggregation for Operators December 10 th , 2019 About Tara Tara Neal is the Executive Editor and Telecom Strategist at The Fast Mode. She has more than 20 years of experience in research, analysis and

slide-1
SLIDE 1

How to Win from OTT Disruption

Content Aggregation for Operators December 10th, 2019

slide-2
SLIDE 2

2 2

Tara Neal is the Executive Editor and Telecom Strategist at The Fast Mode. She has more than 20 years of experience in research, analysis and strategy planning. She has written extensively on various topics relating to networking, SDN/NFV, 5G, OSS/BSS, digital services innovations, operator strategies, market trends and growth and development of various emerging sectors. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States.

About Tara

Tara Neal Executive Editor, The Fast Mode

slide-3
SLIDE 3

3

Agenda

  • Market overview: PayTV in APAC and South East Asia
  • OTT disruption: Technology, UX/CX, Content
  • The new goal for Operators and the strategies to reach it
  • Let’s get practical
  • Summary
slide-4
SLIDE 4

4 4

Head of Operator Products for Vewd, leading the development of all pay TV operator products and defining new product areas for the pay TV industry. 18+ years in the TV industry: Zenterio, ADB, Pirelli Broadband, Telsey.

About Marco

Marco Frattolin Senior Product Manager, Vewd

slide-5
SLIDE 5

5

EMPLOYEES WORLDWIDE

230+ 9

COUNTRIES WITH VEWD OFFICES

United States New York & San Francisco Norway Oslo Sweden Gothenburg & Linkoping Poland Warsaw & Wroclaw China Beijing South Korea Seoul Japan Tokyo Taiwan Taipei Brazil São Paulo

300

DEVICES DEPLOYED WORLDWIDE

MILLION

GLOBAL CUSTOMERS

60+

The Leading Provider of OTT and Hybrid TV Solutions

Vewd is a Global Technology Company

slide-6
SLIDE 6

6

Why Vewd for Pay TV Operators

Pioneering TV and OTT for the past 17 years Ships on ~40M devices per year, over 300M in total Most deployed HTML5 and hybrid TV SDK in the industry Compatible with all major premium OTT TV Apps ▪ Powering 10+ leading Pay TV Operators around the world ▪ Working with 4 of the top 5 STB manufacturers ▪ Integrated on all major silicon platforms ▪ Available on all STBs: Linux, AOSP, Android TV and RDK

OPERATORS TV PLATFORMS STB VENDORS OS’s

slide-7
SLIDE 7

7

The Big Picture in APAC

The impact of IP 50 100 150 200 250 300 350 400 450 2014 2015 2016 2017 2018

Subs (Millions)

Cable IPTV Satellite OTT

Source: IHS Markit

slide-8
SLIDE 8

8

Indonesia Pay TV Trends

Subscriber growth and penetration rate development 3 694 5 944 6 942 9,6% 13,5% 14,0%

0% 2% 4% 6% 8% 10% 12% 14% 16%

  • 1 000

2 000 3 000 4 000 5 000 6 000 7 000 8 000

2014 2019 2024

Subscribers (Thousands) Source: Media Partners Asia “Asia Pacific Pay-TV Distribution 2020” Penetration Rate

Revenue growth

366 543 659

2014 2019 2024

USD Millions

slide-9
SLIDE 9

9

India Pay TV Trends

Subscriber growth and penetration rate development

118,64 137,04 153,12 75,8% 77,4% 81,2%

73% 74% 75% 76% 77% 78% 79% 80% 81% 82% 20 40 60 80 100 120 140 160 180

2014 2019 2024

Subscribers (Millions) Source: Media Partners Asia “Asia Pacific Pay-TV Distribution 2020” Penetration Rate

6 813 11 122 14 881

  • 2 000

4 000 6 000 8 000 10 000 12 000 14 000 16 000

2014 2019 2024

USD Millions

Revenue growth

slide-10
SLIDE 10

10

Philippines Pay TV Trends

Subscriber growth and penetration rate development

2 652 5 096 6 470 14,1% 23,7% 25,6%

0% 5% 10% 15% 20% 25% 30%

  • 1 000

2 000 3 000 4 000 5 000 6 000 7 000

2014 2019 2024

Subscribers (Thousands) Source: Media Partners Asia “Asia Pacific Pay-TV Distribution 2020” Penetration Rate

Revenue growth 320 400 432

  • 50

100 150 200 250 300 350 400 450 500

2014 2019 2024

USD Millions

slide-11
SLIDE 11

11

Vietnam Pay TV Trends

Subscriber growth and penetration rate development

6 940 11 653 13 429 34,8% 54,4% 59,0%

0% 10% 20% 30% 40% 50% 60% 70%

  • 2 000

4 000 6 000 8 000 10 000 12 000 14 000 16 000

2014 2019 2024

Subscribers (Thousands) Source: Media Partners Asia “Asia Pacific Pay-TV Distribution 2020” Penetration Rate 488 866 1 054

  • 200

400 600 800 1 000 1 200

2014 2019 2024

USD Millions

Revenue growth

slide-12
SLIDE 12

12

OTT Disruption Continues

Key aspects

Technology UX and CX Content

All trademarks are property of their respective owners.

slide-13
SLIDE 13

13 13

OTT Transforms Operator Services

Industry moving away from traditional broadcast technology

OTT TECHNOLOGY

  • IP architectures
  • vs. traditional broadcast transmission
  • Adaptive bitrate protocols and DRM
  • vs. broadcast, multicast and CA
  • Cloud-based shared workflows
  • vs. siloed and on-prem
  • Open networks, public clouds, CDNs
  • vs. closed managed networks

MORE & BETTER SERVICES

  • VoD, PVR
  • Personalization /

addressable

  • Linear and Live

Impacts on ways of working

  • Agile and DevOps
  • vs. waterfall

WHAT DRIVES ADOPTION

  • Broadband availability, fixed or mobile
  • OTT technology is now sufficiently mature
  • Cloud capacity is proven
  • Makes economic sense in more cases
slide-14
SLIDE 14

14 14

OTT Traffic Outpaces Managed IP

Asia Pacific video traffic set for exponential growth, but not through traditional TV connections 22 47 97 10,8 15,26 17,13 20 40 60 80 100 120 2018 2020 2022 Exabytes CDN traffic (mostly video streaming) TV services on managed network

Sources: Cisco

slide-15
SLIDE 15

15

OPTIMIZED TO DRIVE USAGE AND ENGAGEMENT

  • Content-centric
  • Context-sensitive
  • Always evolving
  • Data-driven and personalized
  • Based on intuitive spatial navigation
  • Voice control

OTT Impacts UI and UX

Engaging interfaces inspired by the web

All trademarks are property of their respective owners.

slide-16
SLIDE 16

16

OTT Impacts Consumer Experience

Net Promoter Score face-off (low, mean, high) TV and Internet Service Providers (-16, 0, 19) Streaming Media (24, 39, 49)

Source: Qualtrics XM Institute (US-only)

slide-17
SLIDE 17

17

Pre-2007 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019+

OTT Impacts Content Choice

More services compete for share-of-wallet

Youku Tudou Eros Now MLB.TV YouTube Crunchy- Roll Amazon Prime Video Viki Netflix Vudu Crackle Hulu Iqiyi tonton Hulu Plus HBO Go Watch- ESPN Tencent Video Google Play Twitch Catchplay Fox Sports Go Hotstar iFlix Line TV WWE Network Pluto TV CBS All- Access CBSN HOOQ Viu Showtime OTT HBO Now Sony PS Vue Sling TV fubo TV DAZN NHL.TV Fandango Now NBC Sports Gold VRV DirecTV Now Apple TV OONA Philo Paramount + YouTube TV CBS Sports HQ B/R Live WatchTV Fox Nation NBC WatchBack Disney+ HBO Max AppleTV+ Peacock AMZN Freedrive WarnerMedia CMCSA DISCA

Source: Barclays, Vewd internal

slide-18
SLIDE 18

18

Content, Not Price, Drives Subscriptions

Percent who cite content versus price when purchasing multiple OTT subscriptions

71% 70% 64% 72% 69% 66% 64% 29% 30% 36% 28% 31% 34% 36%

0% 10% 20% 30% 40% 50% 60% 70% 80% India Indonesia Malaysia Philippines Singapore Thailand Vietnam Price Content

Source: Brightcove

slide-19
SLIDE 19

19

New Operator Strategies

slide-20
SLIDE 20

20

The Goal: An Integrated Operator Experience

Overcoming platform and content fragmentation

The problem is not only how to deliver content, but also how to improve the whole consumer journey and process of finding, consuming and paying for content.

Consume Pay Explore OPERATOR EXPERIENCE Consumer

slide-21
SLIDE 21

21 21

“The maximum upside is likely to accrue to distributors who can create product bundles rather than price bundles.”

slide-22
SLIDE 22

22

Operator Strategies

slide-23
SLIDE 23

23

1st Screen is Important

Time spent watching TV in Asia Pac by country 5 10 15 20 25 30 35 Indonesia Taiwan Vietnam New Zealand Australia India Thailand South Korea Singapore China Hong Kong Hours per week

Source: Statista Modern TV UX

slide-24
SLIDE 24

24

PREVIOUS TV UX DESIGN

  • Driven by technology
  • Based on how the content is packaged and delivered
  • Based on when the content is available
  • Complex remote control

Modern TV UX

From technology-centric to content-centric

MODERN TV UX DESIGN

  • Content takes prime position with video, pictures, metadata
  • Context and relevance drive discovery
  • Personalization algorithmic + editorial
  • Technology used seamlessly to access any content anytime
  • Intuitive navigation with minimal remote control

Modern TV UX

All trademarks are property of their respective owners.

slide-25
SLIDE 25

25

Multiple Device Options Required

Home hub STB Dongle Audio form factors Operator TV BYOD Media player Retail Smart TV

Multimedia gateway, smart home Hybrid Small box, HDMI stick, IP-only Soundbar Smart speaker Co-branded, co- marketed smart TV Pay TV app on device app store Pay TV app on Smart TV

Higher Capex Customized features More control, walled garden Bundling opportunities Lower Capex Standard features Less control, open to competition Commoditization

OTT technology Need a portfolio approach to reach customers

New Operator formats Broader demographic target Expand reach off-network

Provided by Operator Purchased by End User Partially subsidized TV Client Device strategy

slide-26
SLIDE 26

26

The Search for the Perfect Mix

Premium content The anchor of the bundle Global and local content Complete the offer New categories, longtail, niche Enrich and differentiate

  • Exclusive content
  • Partner / own production
  • Early-to-market OTT apps
  • Complete line-up of linear TV channels
  • Must-have global OTT apps
  • Focus on local content
  • Relevant longtail content
  • Personalization
  • New categories: gaming, short form, niche

The perfect content mix

slide-27
SLIDE 27

27

Let’s get practical

Creating an integrated operator experience

slide-28
SLIDE 28

28 28

Leverage Full Hybrid Technology

  • Use IP/OTT to enrich broadcast
  • Broadcast and OTT channels in
  • ne list
  • Present OTT services as channels
  • Don’t confuse users who want a

traditional zapping experience

All trademarks are property of their respective owners.

slide-29
SLIDE 29

29 29

Rethink Apps as Content Sources

  • Remove friction caused by

download & install

  • Simplify customer journey to video
  • Use deep links

All trademarks are property of their respective owners.

slide-30
SLIDE 30

30 30

Offer New Content: Gaming

  • Make it easy for

subscribers

  • Gaming-as-a-service /

Cloud gaming

All trademarks are property of their respective owners.

slide-31
SLIDE 31

31 31

Thematic Aggregation

  • Combined offer based on

relevance

  • Sport and live events drive

interest for non-premium content

All trademarks are property of their respective owners.

slide-32
SLIDE 32

32 32

Extend OTT to Legacy Boxes

  • Involve legacy and entry-level boxes

in the transition to OTT

  • Enrich certain use cases with

streamlined OTT functionality and content

  • Introduce cloud management for

update ease

All trademarks are property of their respective owners.

slide-33
SLIDE 33

33 33

Reach Cord-Nevers

…And cord-cutters, cord-shifters and cord-shavers

  • Streaming Media Player share of traffic

set to double by 2022

  • Declining STB use
  • Provides easy entry-point for cord-

nevers, cord-cutters and cord-shavers

2 4 6 8 10 12 14 16 18 2017 2018 2019 2020 2021 2022

Average Exabytes Per Month

Streaming Media Player Traffic

Source: Cisco Visual Networking Index

slide-34
SLIDE 34

34 34

Innovate with Pricing Models

  • Bundle value perceived by consumers is non-linear
  • Free trials, free+ads, freemium
  • Broadband and data products can be combined with TV and video (data volume, mobile)
slide-35
SLIDE 35

35 35

Summary

Content Aggregation for Operators

  • PayTV growth is slowing down in South East Asia, however subscribers and revenues will still increase
  • OTT impact on Pay TV
  • technology
  • user experience and customer experience
  • content
  • Operators can capture OTT growth by solving platform and content fragmentation for consumers
  • Operator strategies
  • 1st screen TV UX
  • client devices
  • the content mix
  • Some practical suggestions
slide-36
SLIDE 36

36 36

“We believe service providers are likely to be the best positioned as aggregators and therefore major beneficiaries”

slide-37
SLIDE 37

37 37

marco@vewd.com www.vewd.com

Thank you

Marco Frattolin